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Murphy Vetoes Bill That Would Allow Brick BOE to Exceed Tax Hike Cap

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Toms River, Brick and students from 70 other districts across New Jersey attend a rally in Trenton over school funding cuts, March 5, 2019. (Photo: Daniel Nee)
Toms River, Brick and students from 70 other districts across New Jersey attend a rally in Trenton over school funding cuts, March 5, 2019. (Photo: Daniel Nee)

What some saw as a fix for an underfunded school district was seen by others as the proverbial straw that would break the camel’s back: the ability to raise property taxes above the state’s 2 percent cap to compensate for Trenton’s $23 million funding cut for Brick schools.

Gov. Phil Murphy on Monday vetoed legislation that would have allowed the Board of Education to raise taxes above the cap, saying the legislature should consider raising the state’s so-called “millionaires’ tax” instead. Under a previous bill signed into law by Murphy known as S-2, Brick is losing $23 million in funding for its schools over a seven year period, and will already be forced to raise taxes to the 2 percent limit every year. But even with the maximum tax increases, the difference in funding will not be made up. The district, next year, will remove some Advanced Placement courses and likely lay off teachers for the second year in a row. There are also potential cuts to sports and extracurriculars, the imposition of a “pay to play” system and school closings.

“Before middle-class property taxpayers have to again take it on the chin, we should be asking our wealthiest residents to pay their fair share through a millionaire’s tax,” said Murphy.

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New Jersey has imposed a “millionaires’ tax” since 2004. It began as a tax of 8.97 percent and rose by 2009 to 10.75 percent as a levy against all incomes over $1 million. The rate has since dropped back to its original amount, but Murphy has long lobbied for increases back to 10.75 percent. The legislature, however, has been reticent to directly raise income taxes in what is already the highest-taxed state in the nation.

Murphy, in a statement released Monday, did not signal relief for districts like Brick, instead doubling down on his support for S-2’s funding cuts by calling the measure a “plan to correct years of inequitable funding of New Jersey’s schools.”

Brick, the state’s funding formula holds, does not pay enough in property taxes to support its school system. That very formula, however, is kept secret by the state under the reasoning that it is “proprietary,” and is the subject of a lawsuit that would make it public.

“I strongly believe that issues as important to New Jersey residents as property taxes and education funding warrant more deliberation than this bill was given,” said Murphy, who criticized its “fast track” from the legislature to his desk in 11 days. “State-level decision-makers should not delay difficult funding decisions until the end of the legislative session and fast track what amounts to a tax increase on the middle class without first exhausting all other options.”

Brick’s next Board of Education meeting is set for this Thursday, Jan. 16, at 7 p.m. in the Professional Development Center adjacent to the central board office on Hendrickson Avenue.